Standard Life wins £100m claim against PI insurers over Sterling fund

Standard Life has successfully sued its professional indemnity insurers for around £100m to recover losses related to its Pension Sterling Fund.

The judgment was handed down today by the Commercial Court in London against the insurers of the 2008/09 policy on the fund.

In a stock exchange update, the company said the insurers have been granted leave to appeal, although this would probably not be heard before autumn 2012.

No recoveries in respect of the claim will be recognised in the financial statements for the year ended 31 December 2011, and the ultimate recognition of claim proceeds will depend on the outcome and timing of the appeal.

Standard Life was forced to inject £100m into its Standard Life Pension Sterling Fund in 2009 during the credit-market contraction following the collapse of Lehmans in 2008.

The fund was marketed as a low-risk, cash-based investment but subsequent losses led to hundreds of complaints from Standard Life investors.

Standard Life was fined £2.45m by the FSA in 2010 for serious failings relating to the fund.